South Korea will investigate the incident of leaked mnemonic phrases related to cryptocurrency that caused a loss of 4.8 million dollars to the tax authorities

According to CoinDesk, the South Korean National Tax Service has apologized after a seizure operation inadvertently displayed original photos containing hardware wallet recovery phrases, leading to the theft of $4.8 million in cryptocurrency. The South Korean National Tax Service stated that it failed to recognize the inclusion of sensitive information when providing photos from the seizure site.

The South Korean National Tax Service has now requested police intervention to recover the assets and plans to conduct a comprehensive review of security systems and virtual asset management manuals. South Korean Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol posted on the X platform that institutions such as the Financial Services Commission and the Financial Supervisory Service will investigate this leak incident and strengthen the regulation of public institutions managing digital assets.